Is Foreign Expansion an Effective Way to Boost Sales and Profits?

This paper posits, based on the data set covering an 8‑year period between 2006 and 2013, that Polish firms show an inverted U-curve relationship between multinationality and performance. At the beginning of internationalization a short stage of rising performance might be observed, however, quickly rising costs stemming from the liability of newness and foreignness lead to a fall in performance. This is not only contrary to the predictions resulting from the traditional S-curve analysis but also indicates that executives’ high expectations regarding foreign expansion might be a sign of a “global illusion”